How Jewellery Showrooms Cheat Customers :-Jewellery purchase is the only domain where females don’t bargain a
How Jewellery Showrooms Cheat Customers :-
Jewellery purchase is the only domain where females don’t bargain at all and women can be cheated easily. It’s very high margin business and customer can be easily fooled to the extent of 35%-40% of total sales value (Which is clean profit margin for Showrooms).
Let’s discuss these points in details :-
1. Making Charges :-
The biggest culprit among all. Showrooms can charge making charges upto 40% of sale value. If you have observed closely then most of the salesmen try to convince accompanying female member. Once they gauge the mind then price is being quoted. Reputed Showrooms in India quote making charges as 30% for a necklace, but on calculation we understand that we are paying 30k as making charges on a jewellery worth 1 Lakh. i.e. approx 43% of overall value. Now you can image the extent of cheating. Instead, highest making charge for any jewellery at Brilliant Cut is 14%. Thus, saving Rs. 72300 on every 100 Gms. purchase by a buyer.
2. Gold Purity :-
The purity of Gold is measured in carat. 24 Carat is purest form of Gold available but you cannot make any jewellery from 24 Carat Gold. 24 Carat Gold can be held only in the form of gold coin or gold brick. Purest form of jewellery is 22 Carat. The Hallmark gold contains Gold Purity seal but to value conscious customers, Many Jewellers pitch low carat gold and charge high. Reason for this is customer has particular budget in mind and the jeweller tries to fit customer’s requirement in customers budget with low carat gold. In this bargain, he cheats customers on Gold Purity. In small towns, still the Jeweller’s word is final on Gold purity. They sell 18 Carat gold and charge for 22 carat gold, i.e. Rs. 82300 Profit for Showrooms on every 100 Gms. The oral guarantee of Jeweller in small towns is biggest guarantee for a customer. Not to worry, Brilliant Cut not only sells 916 hallmark jewellery, but also gets them checked in a carat meter before selling to a buyer.
3. You are Paying Gold Rate for Ordinary Stones:- Any piece of jewellery is incomplete without colourful stones. When you are buying this jewellery piece then jewellery showrooms weigh the entire piece and charge at Gold Price but have you thought that you are paying the price of Gold for ordinary stones costing few hundred bucks embedded in jewellery. If you go for exchange of same piece then they will deduct the weight of stones as impurity from total value. Assuming these stones weigh 10% of total weight then at the time of purchase, you are paying 10% extra and at the time of sale, you will get 10% less value. It’s a double loss for a buyer, equivalent to Rs. 1 Lakh on every 5 lakh purchase. Brilliant Cut excludes the stone weight from gold.
Normally Jewellers charge 5%-7% of total gold weight as wastage during making. It is different from making charges and it implies the quantity of gold wasted during making. Trust us, not even a single gram gold is wasted during making as Gold can be melted and used again. Because of which, Brilliant cut doesn’t charge any wastage to a buyer. Thereby, saving Rs. 70, 000 on 5 lakh purchase.
5. Jewellery Cleaning:-
This is complementary service from Jewellery Showrooms and customers thank them that they are such nice people to clean jewellery for FREE….Friends, there are no free lunches in this world. For cleaning gold jewellery, the jewellery showrooms put the jewellery in one solution which is basically acid. Whenever gold is put in this acid then gold particles are dissolved in this acid. If you weigh the jewellery before and after cleaning then you will observe the difference of a gram or few fraction of same. So if jewellery showrooms are cleaning 100 pieces in a month then they can easily extract 60-70 grams of gold from acid solution which is worth more than 2.5 Lacs today. Brilliant cut pays for the difference in gold weight before and after cleaning process.
6. Converting Gold Coins to Jewellery:-
Many people invest in form of Gold Coins bought from banks or jewellery showrooms. If you are selling Gold Coins back to the same jeweller from whom you bought the same then you will get 97% of complete value. But if u are selling or converting Gold Coins purchased from bank to jewellery showrooms then no one will buy at market rate. Despite being of 22 or 24 carat purity, they are accepted @ 10% to 15% discounted rates on prevailing market rate. Its a heavy loss, equivalent to Rs. 75000 on 5 Lakh for a buyer. On the contrary, Brilliant Cut buys Gold at prevailing market rate without any deductions.
7. Wax in gold jewellery :-
A buyer bought gold necklace weighing 49.98 Gms. from a branded showroom for Rs. 222000. After few months when he went to sell the same necklace, he got Rs. 146257 only (even though gold price was much higher than the purchase price) and they said the weight of gold was only 32.92 Gms. Which means he was cheated of 17.06 Gms. worth Rs. 76599.
Brilliant cut’s jewellery is open from behind to avoid any incorporation of wax, thereby saving more than 30% of the overall value for a buyer.